Wednesday, July 13, 2005

"Work three months, make $32 million!"

Loyalty is a prized commodity on Wall Street, and in the case of Stephen S. Crawford of Morgan Stanley, it has paid a $32 million dividend.

Mr. Crawford, a former investment banker who was appointed co-president by Philip J. Purcell in March amid a power struggle, left the firm yesterday. His contract cast a spotlight on the Morgan Stanley board, which remains under fire for its close ties to Mr. Purcell even weeks after his departure as chairman and chief executive.

Mr. Crawford's pay package is particularly unusual because he was co-president for only three months, yet he will take home a severance package that pays him as if he had been co-president for two years and allows his stock to vest - the executive-suite equivalent of hitting the lottery.